Tax plan upsets students

Press, 21 April 1982, Page 13

Tax plan upsets students

■ PA Wellington

Students could pay more tax and face “mammoth"

increases in costs under tax reform proposals in the Government’s McCaw Committee report, the New Zealand University Students’ Association has said.

The typical student income group would face a $225-a--year increase in taxation, as well as big increases in costs as a result of indirect taxation, if the recommendations were adopted, said the association’s president, Mr Brian Small.

“The committee bluntly states that students, who earn only about $l3OO a year and receive a basic bursuary

of $27 a week, have paid less income tax than was appropriate in terms of ability to pay, so an increase in their tax liability is justified," he said.

"We are stunned at the ignorance of the committee, who justify their claims on the basis that students’ parents have the students’ income to -supplement the households. "The fact is parents are forced to contribute up to $2O

a week to the student children’s upkeep, with no tax relief to recognise this,” said Mr Small.